Business Facilities - December 2008 - (Page 11)

ident and CEO of Rolls-Royce North America, the combination of VGR’s excellent transportation infrastructure, large and varied skilled workforce, competitive incentive package, and a superior quality of life sealed the deal. “The overall combination of value that we saw in [Virginia] was the deciding factor,” Guyette says. London-based Rolls-Royce, the second largest maker of aircraft engines, says it intends to assemble and test engines for midsize jets at the new advanced manufacturing center, which will be located about 25 miles south of Richmond and is scheduled to be fully operational by the end of 2009. The North American headquarters of Rolls-Royce are located in Chantilly, VA. A major attraction of the Prince George County site for Rolls-Royce was the fact that it is 100% countyowned, with all studies and due digilance already completed, allowing for a swift and simple transaction and fast permitting. As an additional sweetener, Prince George County gifted the plot of land to Rolls-Royce. Our judging panel was particularly impressed with the creativity displayed by Virginia in crafting an incentive package for Rolls-Royce. Included in the package are $35 million in performance grants; $56.8 million in cash payments that are partly dependent on employment and investment targets over the next 16 years; $6 million from the Governor’s Opportunity Fund to meet future infrastructure needs; a $5 million grant for the development of spin-off companies; a five-year tax break on machinery taxes, tool taxes, and the company’s business license; a 50% discount for connecting utilities; and the waiving of rezoning costs also are part of Wayne J. Mon i, Rolls-Royce vic e president, an Renee Chaplin the deal. d e, executive dir ector of VGR Beyond these financial tools, additional lls official at the Ro incentives were Kaine makes it Governor Tim ony. utting cerem included that met the Royce ribbon-c specific needs of RollsRoyce’s technologydriven business, such as guaranteed workforce development funds (Virginia will invest $8.7 million to assist in employee training). VGR also added a “highly customized” relocation package worth PROJECT IMPACT ESTIMATES approximately $1.5 million. Over 10 years, nearly $1.4 billion Virginia predicts that it will break in direct economic activity in VGR; even on its investment in the Rollsindirect economic output will be Royce plant by 2015, and it expects a $489 million; induced activity is return of at least $70 million within expected to total $228 million 20 years. In addition to a bonanza of new jobs, the state is making a con3,110 direct jobs created; 3,019 certed effort to lure a number of tierindirect jobs; 2,097 induced jobs one suppliers to service the new plant, maximizing the overall impact. $205 million in direct personal “The Rolls-Royce deal represents income (wages); $174 million in an impressive initiative to create indirect income; $75 million in induced income future prosperity for the region and surrounding area,” says judging panel member Howard Silverman, presiEstimates calculated by the NCDS Economic Strategy Center of Atlanta dent and CEO of The CAI Global Group, Inc. “The numbers are outBUSINESS FACILITIES 11 PHOTO CREDITS: VIRGINIA'S GATEWAY REGION; OFFICE OF THE GOVERNOR OF VIRGINIA

Table of Contents Feed for the Digital Edition of Business Facilities - December 2008

Business Facilities - December 2008 Contents First Word Snapshots Corporate Moves: North Carolina Gold Award: New Engine for Growth in Virginia Silver Award: Tennessee Gets the Big Prize Bronze Award: Enrichment in Idaho Falls Honorable Mentions International Reach From America's Heartland Supply Chain Priorities Metro Spotlight: Greenville/ Spartanburg, SC The Magnolia State Has It All A Real Estate Mega-Merger State of the Year Ask the Expert Advertiser Index

Business Facilities - December 2008

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